France, and the EU, at risk

Reform is painful—and the alternative worse

CASSANDRA has a special affinity for France (after all, lucky man, he spends several months of the year there). So should I feel a frisson of nervousness at the title of the special report on France in this week's Economist? The title is certainly a trifle menacing: "The time-bomb at the heart of Europe". It's the sort of analysis that really upsets most of my French friends. Indeed, a wounded Le Figaro took special aim the other day at The Economist's coverage over the years.

The problem is that the analysis is essentially correct: the France that I and other dreaded "Anglo-Saxons" love is far too conservative for its own good—and precious few of its politicians ever dare to spell out some hard truths, such as the need to reform the rigid labour market (unemployment is now over 10%) or deal honestly with the social problems of the banlieue housing projects around most cities (I say "honestly" because the French state—professing its adherence to laicité, or secularism, and the admirable notion that all Frenchmen are equal regardless of creed or colour—refuses to collect the statistics on its ethnic minorities that countries such as America consider essential to good social policy). Meanwhile, the workers demonstrate in the streets to denounce la classe politique for its ineffectualness, even though they would demonstrate even more if the politicians did finally dare to tell the truth.

But to return to that title: the "time-bomb" is the prospect that at some point in the coming months the financial markets may turn on France (which, you may remember, lost its cherished triple-A rating last year from Standard & Poors). If that happens (and one has to pre-suppose first a "contagion" in the euro-crisis spreading from Greece to Portugal, Spain and probably Italy), then the future of the European Union itself will be at risk. But to stop that happening France under President François Hollande will have to be on the best of terms with Germany's Chancellor Angela Merkel, who is arguing for just the kind of supra-national federal Europe that France, with its Gaullist instincts of independence, is loath to accept. So will M Hollande persuade Frau Merkel she is going too far, or will he bend to her will (Germany is, after all, the euro zone's paymaster these days)? For a good clue, just wait until January 22nd and the 50th anniversary of the Elysée treaty of friendship between France and Germany. The treaty was supposed to emphasise the Franco-German motor at the heart of European integration, with the two countries as equal drivers. Sadly for my French friends, France is no longer in the driving seat—and doesn't deserve to be.

It would be nice (and appropriate) if TE would produce an equivalent critique of Britain, written by a Frenchman, since their economic performance, and current problems, are not that different. While we're at it, how about appointing a European as Blighty and an Italian as Lexington? Let's stir the cultural pot a little and give some perspective other than the Anglo-Saxon orthodoxy.

Actually, I find it striking to read many Anglophone publications, or to listen to many Anglophone friends and colleagues, and to hear/read them profess eternal, transcending love for France. The article about France's region in this week's issue is an example. The sceneries, the culture, the food, the lifestyle, etc. Goody.

And yet most of the same publications and people would prescribe remedies to France's real and serious problems that would make the place a lot less, well, French, and a lot more, well, Anglo-Saxon. It may very well be a good thing, but it would certainly be quite different.

No, clearly nothing would happen to the sceneries or Renaissance architecture (or only marginally), but a lot of France's cultural and lifestyle attributes are impacted by what is an admittedly over-reaching, cumbersome, and calcified government (and the taxes it needs to exist in its current form).

The fact that it is (mostly) possible for many parents, and especially for ones from lower socio-eco groups, to enjoy a successful career is due to abundant and dirt-cheap (at least compared to, say, here in Australia) crèches and kindergardens that operate in synch with most people's business hours (e.g. not like here where kids are rarely welcome before 8.30, and are out the door at 15.00). Services that are of course overwhelmingly paid for by taxes and organised by the state.

The list is endless, so I just picked one at random that many people can relate to on a daily basis.

The big technical question that really matters is how the state is going to provide such services with less resources. There are huge productivity low-hanging fruits to pick within public services, and also between public services themselves, from national to regional to local.

They may have to sack a bunch of civil servants and cut the benefits of many others, but they may equally find that they should re-allocate resources from plethoric central or regional administrations to depleted front-line service providers (in healthcare and education, for starters).

It is a shame that this fundamental, vital discussion is immediately shouted down by noisy special interests with binary slogans, and span the whole socio-political spectrum. A real shame.

Having lived in France for 7 years now and finally retired there I travel back to England my home country every year to see friends and thus get a 'snapshot' of the changes. France is far from perfect but come on guys have you looked around in England lately? A massive population of undereducated, overly aggressive and arrogant going nowhere males, benefit dependent slovenly females, a big brother dominated, surveillence controlled society where jobsworths abound and tell the people who pay them what they are allowed to do and how to abide by petty pointless rules, health and safety to the point of the population being scared to do even the most basic service for others. No, I think I'll stay just where I am thank you, no wonder the French get annoyed being 'judged' by the English....

There are indeed productivity issues in many parts of the public sector (not necessarily the state sector; local governments have been incredibly lavish, and squeal much more loudly than civil servant unions when reined in). Incredibly (for a foreigner) they are now being tackled seriously and with the right approach (identifying the bottlenecks and easing them out) rather than the ideological, brutal and inefficient across the board axe wielding of the previous administration.

As for France being either not enough or too much Anglicized... the (non-)issue brings to mind the traditional flurry of photo captions in the Dutch media during the holidays: "France... what a beautiful country... what a pity it's so badly inhabited!"

Actually Jamesyar it would appear 'garbage' is more your forte than mine, sorry if I dared disagree with your obviously superior intellect, I was under the obviously mistaken impression that this was a comment page and we lived in democracies. It was not I that cited the extreme examples of both countries...just an opinion which prompted 'rose tinted little Englander' typical replies rather than reasoned debate and that say's it all really.....

'Just because someone's opinion may not fit your prejudgement doesn't mean it is invalid.'

No, when you come out with the a ridiculous tabloid rant full of moronic generalisations, it becomes invalid. Please also note that criticise others for prejudgement after spouting garbage only reveals a lack of self awareness.

Good points, nice to see someone willing to engage without deflecting criticism at other countries like the UK.

Perhaps the money those employers saved in laying people off has increased profits which in turns increases taxes to the state and anyone who invested in those shares (French pensions). Its not all bad.

Perhaps the process needs to complete - it is still very difficult to lay anyone off in France?

Some blindness seems to work both ways.
Cassandra writes " the need to reform the rigid labour market (unemployment is now over 10%)", which implies he fully endorses the axiomatic link between freedom to fire and readiness to hire.
Yet in France, every step down that way (and there have been a few, maybe you should compare the protection workers enjoyed in the sixties with the pitiful shreds left) has led to an increase in unemployment, as employers laid off with gay abandon and promised, with equally gay abandon, they would hire when the times were better.
So maybe Cassandra could enlighten us as to the best way to make the potion work; up to now it has had all the unpleasant effects of a purgative, with none of the supposed benefits, yet you are urging us to swallow more?
A good doctor takes feedback and experience from his patients into account. Up to now TE has done neither, instead loftily basking in its own brilliance. There is much more soul searching in France at this time than in TE's premises. So don't be surprised when some impatience emerges in the patient.

I'm guessing that you're reasonably well off and not living in one of France's Banlieues. The comparison with where you're living and with a deprived British inner city area is a false comparison. You need to compare like with like, ie France's Banlieues with deprived British inner city areas.

Because to stick ones head in the sand about race often results in not seeing systemic discrimination against members of a race. If one were to find that a much smaller percent of arab French were hired by local government, then that problem could be addressed. If you don't look you don't see and you can't fix.

Tabloids don't just include The Sun or the other red tops. The genre also includes The Daily Mail, Daily Express and others. They are in many ways worse - a veneer or respectability hiding a poisonous attitude of self loathing, ugly generalisations and xenophobia.

When you start making personal attacks, you just make a fool of yourself.
Your rant was ridiculous, ignorant, and in now way contributed to 'reasoned debate'. If you cannot make sensible contributions (or even manage to use the reply button) then don't comment. Hiding behind 'its my right' is childish and facile.

That was barely even an English sentence.
Are you really retired? Given the hypocrisy about insults, childish personal attacks, lack of self awareness, uncontrolled anger, and poor writing skills, it seems more likely you are around 12 years old.